{"id":257088,"date":"2025-11-02T07:18:18","date_gmt":"2025-11-02T07:18:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/257088\/"},"modified":"2025-11-02T07:18:18","modified_gmt":"2025-11-02T07:18:18","slug":"inflation-shock-knocks-wind-out-of-auction-market","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/257088\/","title":{"rendered":"Inflation shock knocks wind out of auction market"},"content":{"rendered":"<p>Last week\u2019s shocking inflation result, which saw Australia\u2019s trimmed mean inflation surge by 1.0% in Q3 2025 and the annual rate of inflation rise to 3.0%, has all but eliminated chances of another interest rate cut over the foreseeable future.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/Trimmed-mean-vs-RBA.png\" width=\"660\" height=\"567\" alt=\"Inflation versus RBA\"\/><\/p>\n<p>As illustrated below by CBA, financial markets now ascribe a near-zero chance of another rate cut:<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/Chance-of-an-interest-rate-cut.png\" width=\"660\" height=\"635\" decoding=\"async\" loading=\"lazy\" alt=\"Chance of an interest rate cut\"\/><\/p>\n<p>Advertisement<\/p>\n<p>The impact is already apparent in the housing market, with this weekend\u2019s national preliminary auction clearance rate falling to its lowest level in 22 weeks, according to Cotality.<\/p>\n<p>Based on early results, Cotality reported that only 70% of homes that went to auction over the weekend sold, down from 70.5% last weekend (revised down to 66.7% on final figures):<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/Preliminary-auction-clearance-rates.png\" width=\"660\" height=\"331\" decoding=\"async\" loading=\"lazy\" alt=\"Cotality Preliminary clearance rates\"\/><\/p>\n<p class=\"wp-caption-text\">Source: Cotality<\/p>\n<p>Advertisement<\/p>\n<p>Melbourne\u2019s preliminary clearance rate fell to 66.0%, down from 71.8% the week prior. However, the preliminary auction clearance rate for Sydney rose to 70.6%, up from a softer 68.2% early clearance rate last week.<\/p>\n<p>The national auction market had already shown signs of softening, with the monthly average final clearance rate in October declining to 67%, marking the softest result since June 2025.<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/Capital-city-auctions-vs-prices-1.png\" width=\"660\" height=\"478\" decoding=\"async\" loading=\"lazy\" alt=\"Capital city auctions\"\/><\/p>\n<p>Advertisement<\/p>\n<p>Realistically, how far can Australian home prices rise without the stimulus of additional rate cuts, given Australian housing is already among the most expensive in the world?<\/p>\n<p>Will Australia end up following a Canadian and New Zealand-style price bust?<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/Global-house-prices.png\" width=\"411\" height=\"344\" decoding=\"async\" loading=\"lazy\" alt=\"Global dwelling values\"\/><\/p>\n<p>Advertisement<\/p>\n<p>Only time will tell.<\/p>\n","protected":false},"excerpt":{"rendered":"Last week\u2019s shocking inflation result, which saw Australia\u2019s trimmed mean inflation surge by 1.0% in Q3 2025 and&hellip;\n","protected":false},"author":2,"featured_media":257089,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-257088","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/257088","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=257088"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/257088\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/257089"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=257088"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=257088"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=257088"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}